FG Moves to Regularise Electricity Tariffs for Fairer Pricing and Investment Boost
By DAYO ADESULU
The Federal Government has unveiled plans to implement electricity tariff regularisation in Nigeria, aimed at addressing disparities in the current billing structure while stimulating investment in the power sector.
Speaking at the National Integrated Electricity Policy and Nigeria Integrated Resource Plan public presentation in Abuja on Thursday, the Minister of Power, Adebayo Adelabu, highlighted the urgent need to reform the existing electricity tariff system.
Current Electricity Tariff Disparities
Under the existing structure, customers categorized under Band B, who receive 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour, whereas Band A customers, enjoying only two additional hours of supply, are charged N209 per kilowatt-hour.
Describing the pricing model as “unfair”, Adelabu emphasized the need for a more balanced and equitable electricity tariff structure that benefits both consumers and power providers.
Government’s Approach to Electricity Tariff Regularisation
“We will review the electricity tariff again, not necessarily to increase it, but to ensure a fair pricing model that encourages investments while addressing discrepancies,” Adelabu clarified.
The slow pace of migration to Band A customers has been linked to the reluctance of power Distribution Companies (DisCos) to invest in infrastructure upgrades. According to Adelabu, adequate investment is essential for ensuring sustainable and improved electricity services.
“A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A. It is taking too much time because the DisCos have refused to invest,” he noted.
Proposed New Electricity Tariff Bands
The Federal Government is now exploring a new tariff structure that will narrow the gap between Band A, B, and C customers. Adelabu emphasized that the government is not imposing an electricity tariff hike but rather restructuring the tariff bands to create a more equitable system.
“The gap between Band A tariffs and Bands B, C, D, and E is too wide. We believe it is neither fair nor just, and a level of tariff regularisation must be implemented,” the minister stated.
FG’s Commitment to a Balanced Power Sector
The government remains committed to ensuring an efficient power sector that supports economic growth and industrialization in Nigeria. Adelabu reaffirmed that while tariff restructuring is necessary, any changes will be implemented with consumer affordability and investment incentives in mind.
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“We must revamp the sector and modernize dilapidated infrastructure while ensuring that Nigerians get fair pricing for electricity,” he said.
The electricity tariff regularisation initiative aligns with the government’s broader agenda of strengthening Nigeria’s power sector and making electricity more accessible and affordable.
Conclusion
With the Federal Government’s renewed efforts to overhaul electricity tariffs, Nigerians can anticipate a more transparent and equitable pricing system that encourages private-sector investment, improved electricity supply, and economic growth.
Stay updated with the latest developments in Nigeria’s energy sector as the government finalizes its electricity tariff reforms.
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Dayo Adesulu, Online editor, SEO Expert.
